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Firm raises $5M venture capital fund
A local investment banking firm has raised a $5-million venture capital fund to continue investing in Michigan companies.
Grand Rapids-based Charter Capital Partners, an investment banking and capital management firm, said today that it has closed its MAF Opportunity Fund, which the firm designed to invest in companies already backed its predecessor fund, the Michigan Accelerator Fund I.
The new $5-million fund was oversubscribed with commitments from institutional, family office and individual investors.
“The fact that the fund was oversubscribed in seven weeks indicates that investors support our vision and the investment thesis of early stage investing in Michigan-based companies,” Charter Capital Partners Managing Director Dale Grogan said. “We have seen tremendous investment opportunities over the past five years and fully expect that this trend will continue as realizations occur.”
Grogan also voiced a hope that the firm will have the opportunity to raise another fund in the coming years.
MAF Opportunity Fund
As follow-on to the Michigan Accelerator Fund I, the MAF Opportunity fund will invest in three to five companies from within the original portfolio.
The fund will focus on companies with an imminent capital need, potential for a near-term exit and demonstrated external market validation through a strategic partnership, revenue traction or crossing a regulatory threshold.
The fund is managed by Charter managing directors Grogan and John Kerschen, along with Brian Hamilton, senior venture capital associate.
“As our portfolio companies mature, they have continued capital needs,” Kerschen said. “Like many smaller, early stage venture funds, we were nearly fully deployed and had limited ability to continue investing in the portfolio, hence the development of the MAF Opportunity Fund.”